is even more worrying are the signals that the government may cut its expenditure to rein in fiscal deficit. While controlling fiscal deficit is a must, drastic cut in government expenditure would lead to further squeezing of business opportunities since the government is among the largest purchaser of goods and services," the study said.

The economic growth rate slipped to decade's low of 5 per cent in 2012-13 and during the first quarter of current fiscal it stood at 4.4 per cent.